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NY M82322




May 26, 2006

CLA-2-62:RR:NC:3:353 M82322

CATEGORY: CLASSIFICATION

TARIFF NO.: 6217.90.9085

Mr. Bruce Schiller
Schiller Trade Systems Inc.
P.O. Box 268195
Weston, FL 33326

RE: The tariff classification, status under DR-CAFTA and country of origin determination for waistbands; 19 CFR 102.21(c)(4); 19 CFR 12.130(c).

Dear Mr. Schiller:

In your letter dated May 1, 2006, on behalf of New Holland Lingerie, you requested a ruling on the classification, status under the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA), and a country of origin determination for waistbands. As requested, the samples will be returned to you.

The submitted samples, Styles NUN47791 and NC1276 waistbands, are constructed of woven nylon and spandex fabric. The waistbands are approximately 1 to 1½ inches in width, sewn into a loop, and will be incorporated into men’s underwear.

Style NUN47791 is made of fabric wholly formed in the United States of yarns of U.S. origin. The narrow fabric is shipped to Honduras where it is cut to length and sewn into a loop to create the waistband.

Style NC1276 is made of fabric wholly formed in the United States of yarns of U.S. and foreign origin. The narrow fabric is shipped to Honduras where it is cut to length and sewn into a loop to create the waistband.

The applicable subheading for the Styles NUN47791 and NC1276 waistbands will be 6217.90.9085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 6212: parts: other, other, of man-made fibers. The duty rate will be 14.6 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

You request a determination as to whether the waistbands are eligible for duty free treatment under the DR-CAFTA.

Style NUN47791 waistband is made of a narrow fabric of subheading 5806.20 wholly formed in the United States of yarns of U.S. origin and is eligible for DR-CAFTA preference.

Style NC1276 waistband is made of a narrow fabric of subheading 5806.20 wholly formed in the United States of yarns of U.S. and foreign origin. As some of the yarn is of foreign origin, the waistband is not eligible for DR-CAFTA preference.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:"

Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:”

HTSUS Tariff shift and/or other requirements

6215-6217 (2) If the good does not consist of two or more component parts, a change to heading 6215 through 6217 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.

The waistbands are made from a fabric of heading 5806 and are excepted from the tariff shift rule. Accordingly, as the fabric does not meet tariff shift requirements, Section 102.21(c)(2) is inapplicable.

Section 102.21(c)(3) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is neither knit to shape, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred".

In the case of the subject merchandise, the formation of the narrow fabric constitutes the most important process. Accordingly, the country of origin of the waistbands is the United States.

However, Section 12.130(c), Customs Regulations, provides that any product of the United States that is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article. T.D. 90-17, issued February 23, 1990, stated that Customs will use Section 12.130 for quota, duty and marking purposes when making country of origin determinations for textile goods. On July 11, 2000, Customs published T.D. 00-44, stating that Customs will no longer apply 19 CFR 12.130(c) for purposes of country of origin marking. Therefore, the country of origin for the waistbands is the United States. Section 12.130(c) remains in effect for duty and quota purposes.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kenneth Reidlinger at 646-733-3053.

Sincerely,

Robert B. Swierupski
Director,

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